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Author Question: Suppose the price elasticity of demand for good X is 1.5. If household income increases by 25%, ... (Read 35 times)

stananza

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on: Oct 12, 2022

Question 1

If the income elasticity of demand for a good is 0.75, a 25% increase in income results in
◦ a 0.1875% increase in quantity demanded.
◦ a 3% increase in quantity demanded.
◦ a 3% decrease in quantity demanded.
◦ an 18.75% increase in quantity demanded.
◦ There is not enough information to answer.

Question 2

Suppose the price elasticity of demand for good X is 1.5. If household income increases by 25%, ceteris paribus, what is the change in quantity demanded for good X?
◦ a 3.75% increase in quantity demanded
◦ a 0.375% increase in quantity demanded
◦ a 37.5% increase in quantity demanded
◦ no change in quantity demanded
◦ There is not enough information to answer this question.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by stananza on Oct 12, 2022

kugyo01

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Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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stananza

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Reply 2 on: Oct 12, 2022
YES! Correct, THANKS for helping me on my review

mammy1697

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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